Finding Text
Criteria: The Code of Federal Regulations (CFR) Title 2, Part 200.305(b)(3) states that non-federal entities must disburse funds for program purposes before requesting payment from the federal awarding agency or pass-through entity. Condition: The District's expenditure reports filed for June 30, 2024 included expenditures in the amount of $19,645 paid in July 2024. These amounts were not reported as committed or obligated. Questioned Costs: None. Context: The District received federal reimbursement before expenditures were paid. Effect: The June 30, 2024 expenditure report was filed overstating expenditures by $19,645. Cause: Grant expenditures reported on the June 30, 2024 expenditure report included $19,645 of expenditures that were not paid by the District until the following year. Recommendation: Grant expenditure reports should only include expenditures that have been paid during the grant report expenditure period. Management's response: There is no disagreement with this finding, and management will monitor all future federal reimbursement requests. Committed and obligated expenditure reports will be reported appropriately, and will be paid within 90 days after project completion.